AUTOMOTIVE AXLES 2023-24 Annual Report Analysis

Tue, 16 Jul

AUTOMOTIVE AXLES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

AUTOMOTIVE AXLES Income Statement Analysis

• Operating income during the year fell 4.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.0% in FY24 as against 11.1% in FY23.
• Depreciation charges decreased by 12.1% and finance costs decreased by 9.0% YoY, respectively.
• Other income grew by 219.4% YoY.
• Net profit for the year grew by 2.5% YoY.
• Net profit margins during the year grew from 7.0% in FY23 to 7.5% in FY24.

AUTOMOTIVE AXLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,237	22,292	-4.1%
Other income	Rs m	49	157	219.4%
Total Revenues	Rs m	23,286	22,449	-3.6%
Gross profit	Rs m	2,575	2,463	-4.3%
Depreciation	Rs m	414	364	-12.1%
Interest	Rs m	29	27	-9.0%
Profit before tax	Rs m	2,181	2,230	2.2%
Tax	Rs m	561	568	1.3%
Profit after tax	Rs m	1,620	1,662	2.5%
Gross profit margin	%	11.1	11.0
Effective tax rate	%	25.7	25.5
Net profit margin	%	7.0	7.5

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

AUTOMOTIVE AXLES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -10.7%.
• Long-term debt down at Rs 21 million as compared to Rs 63 million during FY23, a fall of 66.7%.
• Current assets rose 10% and stood at Rs 10 billion, while fixed assets fell 5% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 6%.

AUTOMOTIVE AXLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,593	8,759	15.4
Current Liabilities	Rs m	3,716	3,318	-10.7
Long-term Debt	Rs m	63	21	-66.7
Total Liabilities	Rs m	11,517	12,264	6.5
Current assets	Rs m	8,813	9,700	10.1
Fixed Assets	Rs m	2,703	2,564	-5.2
Total Assets	Rs m	11,517	12,264	6.5

AUTOMOTIVE AXLES Cash Flow Statement Analysis

• AUTOMOTIVE AXLES's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 404.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 117.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -565 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 218 million from the Rs -630 million net cash flows seen during FY23.

AUTOMOTIVE AXLES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	516	2,602	404.1%
Cash Flow from Investing Activities	Rs m	-837	-1,819	-
Cash Flow from Financing Activities	Rs m	-309	-565	-
Net Cash Flow	Rs m	-630	218	-

Current Valuations for AUTOMOTIVE AXLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 110.0, an improvement from the EPS of Rs 107.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,042.0, stands at 18.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	1,537.9	1,475.3
TTM Earnings per share	Rs	107.2	110.0
Diluted earnings per share	Rs	107.2	109.9
Price to Cash Flow	x	17.6	16.5
TTM P/E ratio	x	22.1	18.6
Price / Book Value ratio	x	4.0	3.8
Market Cap	Rs m	30,722	33,486
Dividends per share (Unadj.)	Rs	32.0	32.0

Ratio Analysis for AUTOMOTIVE AXLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY24, from 2.4x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 85.0x during FY24, from 75.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 19.0% during FY24, from 21.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 25.7% during FY24, from 28.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 13.8% during FY24, from 14.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.4	2.9
Debtors’ Days	Days	78	60
Interest coverage	x	75.8	85.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.3	13.8
Return on equity	%	21.3	19.0
Return on capital employed	%	28.9	25.7

To see how AUTOMOTIVE AXLES has performed over the last 5 years, please visit here.

AUTOMOTIVE AXLES Share Price Performance

Over the last one year, AUTOMOTIVE AXLES share price has moved down from Rs 2,145.4 to Rs 2,042.0, registering a loss of Rs 103.5 or around 4.8%.

Overall, the S&P BSE SENSEX is up 23.4% over the year.

(To know more, check out historical annual results for AUTOMOTIVE AXLES and quarterly results for AUTOMOTIVE AXLES)